There had been a massive growth in calls from debt collection agencies after the recession. It is nothing new; threatening and abusive calls are used by many debt collection agencies to recover money.
Debt problems are normal. But if the collection agencies have started knocking your door, you must take proactive measures to deal with them. They are desperate to recover money and will try every possible way to do that.
Who are debt Collectors?
They are private agencies who generally work on behalf of different credit or lending companies. The creditors hire them directly or sell the accounts of the defaulters to them for a faster recovery. They earn commission from the recovered debt.
If you have serious debt problem try to solve it before the debt collectors knock your door. But if the debt collection agency has already contacted you, it is still not too late to come into a negotiation with the respective creditor. However, do not ignore their calls. It will only make things worse.
Is there any limit to what debt collectors can do?
There are certain rules that they must follow in the collection process. But they often cross the limit as many debtors do not have any clear idea about their rights.
Debt Collection Rules set by Office of Fair Trading:
- Intimidation of any form is not allowed. The debt collectors may call or send mails to the debtor but they should not overdo it. Repeated call or mails from any debt collection agency can be reported to the Office of Fair Trading for immediate action.
- It is not an obligation to allow any debt collector at your home. Debt collectors generally call a debtor and ask for a meeting at their home. If you agree to this appointment once, they will get the access to your home and will try to turn up anytime they want.
- If you do not want to let the debt collectors at your place, you can answer their call by saying that you have not permitted this request. The rules do not allow debt collectors to turn up unannounced.
- Debt collectors threaten the debtors to recover debts fast. Answer them confidently and tell them that those threats or harassments will be immediately reported to the Office of Fair Trading. Believe it, this can work wonders for you.
- They cannot talk to your neighbours about your financial situation.
- Any type of Harassments can be reported to the local council’s trading standards department. Remember to collect as much information about the lenders and debt collectors as you can so that the trading standards can spot them easily.
- Debt collectors cannot threat you to make higher payments that you cannot afford.
- Abusive and aggressive behaviour along with violence should be immediately reported to the local Police station.
Not responding to a debt collector’s call can put you in further trouble. At the same time, giving in to the debt collector’s threats will only deteriorate your financial and psychological condition. Deal with them smartly.
